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Govt books bleaker than expected

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Fri, 27 Jan 2012 11:43a.m.

Finance Ministerr Bill English says returning to surplus is vital for the country

Finance Ministerr Bill English says returning to surplus is vital for the country

The Government has opened its books and the figures are worse than expected.

Lower-than-expected tax revenue has pushed the crown accounts into the red by $4.5 billion in the five months to the end of November.

Prime Minister John Key says the government is still on track to get back to black by 2015 – but by much less than forecast.

He says the surplus is likely to be in the range of $300 million to $500 million.

The low figures reinforce the need for ongoing spending restraint and responsible fiscal management, Finance Minister Bill English said in a statement.

While Europe’s ongoing debt problems mean reducing Government deficits “won’t be easy”, Mr English says returning to surplus is vital for the country.

“Returning to surplus and repaying debt are among the most important things the Government can do to ensure New Zealand can withstand future shocks and build a more competitive economy,” he says.

“Returning to surplus is important to our plan to limit debt and take pressure off interest rates and the exchange rate.”

Costs from the most recent Canterbury earthquake on December 23 will be included in the accounts once the Earthquake Commission has measured their financial impact.

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Comments

29 Jan 2012 06:22a.m.

Homer wrote:

All this will be irrelevant in a short time people. Europe's economy is about to collapse and the rest of the world will follow suit. This is inevitable, there is enough evidence to support this. The worlds monetary system was never going to last, it's flawed and there is no way for countries to get out of it. The only thing we can do is prepare ourselves. This is something John Key knows full well and is keeping from us all just like the rest of the worlds powers.

28 Jan 2012 02:13p.m.

Clarke wrote:

@Fellowes the funny thing is no one voted for John Key... if you look at the total percentage of elligible voters... John Key is ruling with 34 percent support... so really no support at all. The left got about the same amount of the vote and the other third stayed home and gave a no vote.... but because we dont have a system in place for dealing with disillusioned voters John Key won by default... however he is the most unsupported Prime Minister in New Zealands electoral history. No one voted for him... you shouldnt be able to run a government that consists of only 34 percent of the vote. John Key most certainly doesnt have a mandate from the people... so I see Kiwisreacting to many of his policy changes via riots and protests.

28 Jan 2012 08:27a.m.

Fellowes wrote:

Prepare yourself for this Far Right govt to use the global economic crisis as an excuse to implement their amoral right-wing agenda. It's sickening. Who voted for these chimps?

28 Jan 2012 04:36a.m.

Bill wrote:

Don't worry. They will balance the budget with the proceeds from land sales to the Chinese dictatorship.

27 Jan 2012 09:14p.m.

johnmillan wrote:

What else could we have expected?most of the debit was bought about making the rich richer.

27 Jan 2012 03:45p.m.

Bruce wrote:

@Wilbur. Oh thank you very much for mentioning Community Nursing in your comment. Thank you also for following my comments so closely. You may have noticed i mention "health" often in my comments? thats because thats my field. Yes it is true the Looney Nats have increased Community Nursing funding (on paper). Doesn't it sound good on paper? doesn't it sound good in the media? Unfortunately, in reality on the front... Its NOT happening. I work for a privately owned organization in the C&CDHB (Wellington) area. Daily, I am seeing "Unexplained" and totally avoidable Lacerations (skin tears) and bone fractures from community Nursing incompetence in this area. District Nurses can not say anything about it to press and other organizations. But I work independently from the C&CDHB and I can say whatever I damn well like. Some district Nurses have patients washing and replacing their own dressings. that is totally unacceptable as along with other problems, it is inviting infections, that are avoidable. DNs and RNs have been instructed to cut $9000.000 from their budget in the 2012/13 period. What the Looney Nats say about improvements are only pseudo improvements. they say it, but its not happening. I will inform you. any recent funding increases are actually funding reinstatements from earlier cuts over the past 3 years. These funding reinstatements are minute, compared to the massive cuts over recent years.

27 Jan 2012 02:04p.m.

Wilbur wrote:

@ Bruce. You regularly comment but rarely make a lot of sense. Were cuts to Education and Health mentioned at all? No. Perhaps cuts to the Public Service in other areas are to be expected. And probably rightly so. What happened in the Private Sector three years ago is now happening in this, until now, insulated arena. I think you'll find the Government has increased spending in both of these areas on projects such as high speed internet to schools and community nursing. Also I think you'll find New Zealand was actually in deficit (if only a small one) when Michael Cullen threw his lolly scramble election bride in 2008. And this after one of the best fincial periods in memory! Add to that the worst international financial crisis since the 1930s and the worst natural disaster ever to happen in NZ and its easy to see why things are not as good now as then. If anyone is Loony it is you. Much like Labour, who you blindly support, you're great at twisting things to suit yourself but useless at actually addressing the problems and finding solutions!

27 Jan 2012 02:00p.m.

James wrote:

Quick more tax cuts, more slashing of public services and selling off assets that will help tons, just like all the other times. looks like we are going to be taken for another ride..

27 Jan 2012 01:14p.m.

sean wrote:

Sorry, But expect this to alot worst in the next few year.

Buy: Gold Silver, bitcoins!!

27 Jan 2012 12:54p.m.

Alex wrote:

There is no brighter future - the National party knows this. It's the new status quo; more for the rich at the expense of everyone else - unless we fight back.